Green View Magazine | December 2019

3 GREEN VIEW MAGAZINE DECEMBER 2019 O p e n i n g L i n e s D E C E M B E R 2 0 1 9 P rojections show rapid growth in revenues across all cannabis market segments, including flower and edibles. Research also shows that illicit sales will decrease as the legal markets mature and more retail outlets come online, making it easier to buy and at lower price points. An article in the Marijuana Business Daily said that: “Canada’s direct cannabis market will double to 11 billion Canadian dollars ($8.2 billion) in the next six years, and flower market share will halve as consumption shifts toward non-combustible methods, according to research by Ernst & Young. While the accounting and consulting firm said dried flower currently makes up 84% of sales, it expects that figure to fall to 46% by 2025. The projections are for the legal and CANADA’S DIRECT CANNABIS MARKET TO GROW BY OVER 50% BY 2025 illicit markets and do not include ancillary sales.” The article’s insight on the discussion continued with: “... by 2025, the expectation is “the percentage coming from the illicit (market) would be significantly lower, especially if quality and price of legal product is commensurate with the illicit market and if access continues to improve,” said Duncan Yang, EY Canada’s real estate and cannabis practice senior manager. Extracts, edibles and non-edible derivatives will make the biggest gains, underpinned by Canada’s upcoming regulations for those products later this year. EY estimates that extracts will grow from the current 10% of the market to 37%, while edibles